The country's seven major banks posted record non-performing loans (NPLs) at the end of May as the economy continued to flounder, a local Chinese-language daily reported yesterday.
The seven banks recorded a total of over NT$445 billion (US$13 billion) in NPLs at the end of May, the paper said.
The figure compared to NPLs totalling NT$842.3 billion recorded by all 53 domestic banks at the end of March.
Meanwhile, the average NPLs as a percentage of total loans for the seven banks reached hit 6.5 percent, compared with 5.89 percent figure for all banks in March, it added.
The rise in the NPLs was mainly attributed to soaring financial problems faced by local enterprises, growing unemployment, and sluggishness in the property market, the paper said.
Among the seven banks, Taiwan Cooperative Bank (合作金庫) had the highest NPLs with over US$78 billion while Medium Business Bank of Taiwan (台灣中小企銀) had the highest NPL ratio of 8.9 percent. Others included in the seven are Bank of Taiwan (台灣銀行), Land Bank of Taiwan (土地銀行), First Commercial Bank (第一商銀), Hua Nan Bank (華南商銀), and Chang Hwa Bank (彰化商銀).
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